Iran Population: 82,801,633

Known as Persia until 1935, Iran became an Islamic republic in 1979 after the ruling monarchy was overthrown and Shah Mohammad Reza PAHLAVI was forced into exile. Conservative clerical forces led by Ayatollah Ruhollah KHOMEINI established a theocratic system of government with ultimate political authority vested in a learned religious scholar referred to commonly as the Supreme Leader who, according to the constitution, is accountable only to the Assembly of Experts - a popularly elected 86-member body of clerics. US-Iranian relations became strained when a group of Iranian students seized the US Embassy in Tehran in November 1979 and held embassy personnel hostages until mid-January 1981. The US cut off diplomatic relations with Iran in April 1980. During the period 1980-88, Iran fought a bloody, indecisive war with Iraq that eventually expanded into the Persian Gulf and led to clashes between US Navy and Iranian military forces. Iran has been designated a state sponsor of terrorism for its activities in Lebanon and elsewhere in the world and remains subject to US, UN, and EU economic sanctions and export controls because of its continued involvement in terrorism and concerns over possible military dimensions of its nuclear program. Following the election of reformer Hojjat ol-Eslam Mohammad KHATAMI as president in 1997 and a reformist Majles (legislature) in 2000, a campaign to foster political reform in response to popular dissatisfaction was initiated. The movement floundered as conservative politicians, supported by the Supreme Leader, unelected institutions of authority like the Council of Guardians, and the security services reversed and blocked reform measures while increasing security repression. Starting with nationwide municipal elections in 2003 and continuing through Majles elections in 2004, conservatives reestablished control over Iran's elected government institutions, which culminated with the August 2005 inauguration of hardliner Mahmud AHMADI-NEJAD as president. His controversial reelection in June 2009 sparked nationwide protests over allegations of electoral fraud. These protests were quickly suppressed, and the political opposition that arose as a consequence of AHMADI-NEJAD's election was repressed. Deteriorating economic conditions due primarily to government mismanagement and international sanctions prompted at least two major economically based protests in July and October 2012, but Iran's internal security situation remained stable. President AHMADI-NEJAD's independent streak angered regime establishment figures, including the Supreme Leader, leading to conservative opposition to his agenda for the last year of his presidency, and an alienation of his political supporters. In June 2013 Iranians elected a moderate conservative cleric Dr. Hasan Fereidun RUHANI to the presidency. He is a longtime senior member in the regime, but has made promises of reforming society and Iran's foreign policy. The UN Security Council has passed a number of resolutions calling for Iran to suspend its uranium enrichment and reprocessing activities and comply with its IAEA obligations and responsibilities, and in July 2015 Iran and the five permanent members, plus Germany (P5+1) signed the Joint Comprehensive Plan of Action (JCPOA) under which Iran agreed to restrictions on its nuclear program in exchange for sanctions relief. Iran held elections in 2016 for the Assembly of Experts (AOE) and Majles, resulting in a conservative-controlled AOE and a Majles that many Iranians perceive as more supportive of the RUHANI administration than the previous, conservative-dominated body.

conventional long form: Islamic Republic of Iran conventional short form: Iran local long form: Jomhuri-ye Eslami-ye Iran local short form: Iran former: Persia etymology: name derives from the Avestan term "aryanam" meaning "Land of the noble [ones]"

head of government: President Hasan Fereidun RUHANI (since 3 August 2013); First Vice President Eshaq JAHANGIRI (since 5 August 2013)

cabinet: Council of Ministers selected by the president with legislative approval; the supreme leader has some control over appointments to several ministries elections/appointments: supreme leader appointed for life by Assembly of Experts; president directly elected by absolute majority popular vote in 2 rounds if needed for a 4-year term (eligible for a second term and an additional nonconsecutive term); election last held on 14 June 2013 (next to be held in May 2017)

note: 3 oversight bodies are also considered part of the executive branch of government

Legislative branch:

description: unicameral Islamic Consultative Assembly or Majles-e Shura-ye Eslami or Majles (290 seats; 285 members directly elected in single- and multi-seat constituencies by two-round vote, and 1 seat each for Zoroastrians, Jews, Assyrian and Chaldean Christians, Armenians in the north of the country, and Armenians in the South; members serve 4-year terms); note - all candidates to the Majles must be approved by the Guardians Council, a 12-member group of which 6 are appointed by the supreme leader and 6 are jurists nominated by the judiciary and elected by the Majles

elections: first round held on 26 February 2016 with second round for 68 remaining seats held on 29 April 2016; (next full Majles election to be held in 2020)

highest court(s): Supreme Court (consists of the president and NA judges) judge selection and term of office: Supreme Court president appointed by the head of the High Judicial Council (HJC), a 5-member body to include the Supreme Court chief justice, the prosecutor general, and 3 clergy, in consultation with judges of the Supreme Court; president appointed for a 5-year term; other judges appointed by the HJC; judge tenure NA

Iran's economy is marked by statist policies, inefficiencies, and reliance on oil and gas exports, but Iran also possesses significant agricultural, industrial, and service sectors. The Iranian government directly owns and operates hundreds of state-owned enterprises and indirectly controls many companies affiliated with the country's security forces. Distortions - including inflation, price controls, subsidies, and a banking system holding billions of dollars of non-performing loans - weigh down the economy, undermining the potential for private-sector-led growth. Private sector activity includes small-scale workshops, farming, some manufacturing, and services, in addition to medium-scale construction, cement production, mining, and metalworking. Significant informal market activity flourishes and corruption is widespread. Fiscal and monetary constraints, following the expansion of international sanctions in 2012 on Iran's Central Bank and oil exports, significantly reduced Iran's oil revenue, forced government spending cuts, and sparked a sharp currency depreciation. Iran’s economy contracted for the first time in two decades during both 2012 and 2013, but growth resumed in 2014. Iran continues to suffer from high unemployment and underemployment. Lack of job opportunities has prompted many educated Iranian youth to seek employment overseas, resulting in a significant "brain drain." In June 2013, the election of President Hasan RUHANI generated widespread public expectations of economic improvement and greater international engagement. Almost two years into his term, RUHANI has achieved some success, including reining in inflation and, in July of 2015, securing the promise of sanctions relief for Iran by signing the Joint Comprehensive Plan of Action (JCPOA) with the P5+1. The JCPOA, which severely limits Iran’s nuclear program in exchange for unfreezing Iranian assets and reopening Iran to international trade, should bolster foreign direct investment, increase trade, and stimulate growth. In spite of RUHANI’s efforts, Iran’s growth was tepid in 2015, and significant economic improvement resulting from sanctions relief will take months or years to materialize.

general assessment: currently being modernized and expanded with the goal of not only improving the efficiency and increasing the volume of the urban service but also bringing telephone service to several thousand villages not presently connected

domestic: heavy investment by Iran's state-owned telecom company has greatly improved and expanded both the fixed-line and mobile cellular networks; a huge percentage of the cell phones in the market have been smuggled into the country

international: country code - 98; submarine fiber-optic cable to UAE with access to Fiber-Optic Link Around the Globe (FLAG); Trans-Asia-Europe (TAE) fiber-optic line runs from Azerbaijan through the northern portion of Iran to Turkmenistan with expansion to Georgia and (2015)

18 years of age for compulsory military service; 16 years of age for volunteers; 17 years of age for Law Enforcement Forces; 15 years of age for Basij Forces (Popular Mobilization Army); conscript military service obligation is 18 months; women exempt from military service (2012)

Iran protests Afghanistan's limiting flow of dammed Helmand River tributaries during drought; Iraq's lack of a maritime boundary with Iran prompts jurisdiction disputes beyond the mouth of the Shatt al Arab in the Persian Gulf; Iran and UAE dispute Tunb Islands and Abu Musa Island, which are occupied by Iran; Azerbaijan, Kazakhstan, and Russia ratified Caspian seabed delimitation treaties based on equidistance, while Iran continues to insist on a one-fifth slice of the sea; Afghan and Iranian commissioners have discussed boundary monument densification and resurvey

despite substantial interdiction efforts and considerable control measures along the border with Afghanistan, Iran remains one of the primary transshipment routes for Southwest Asian heroin to Europe; suffers one of the highest opiate addiction rates in the world, and has an increasing problem with synthetic drugs; regularly enforces the death penalty for drug offences; lacks anti-money laundering laws; has reached out to neighboring countries to share counter-drug intelligence